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Team Meeting

Internal Transfers to Family or Management

With Internal Transfers the best thing you can do is PLAN EARLY! The risks associated with an internal transfer are much higher than if the business was sold to an outside 3rd party. Why? 

  1. The business is typically sold for less than fair market value. Determine what discounts are allowed to meet IRS guidelines. 

  2. Employees or family members that have expressed interest in purchasing the business often times do not have the financial resources to purchase the business.  

  3. The financial terms typically include payments over a long period of time placing the owners value at risk. 

  4. Mismanagement of the company increases the likelihood that the owner will not get paid the full value of the business. 

Internal Transfers to Family or Management: Services
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